Parental leave scheme gets thumbs up

The Federal Government is winning widespread support for its decision to include a paid parental leave scheme in Tuesday night's Budget.

The Government says the scheme will cost $260 million a year and will not require any private sector funding.

The scheme will be introduced from the start of 2011, but will be restricted to those people earning less than $150,000 a year.

Mothers who stay at home will still receive the baby bonus, but recipients of the paid parental leave will not be eligible for that payment or family tax benefit B.

The scheme will provide 18 weeks leave to be paid by the Government at the federal minimum wage, which is currently about $544 a week.

The Australian Industry Group's Heather Ridout says business has been pushing for such a scheme.

"It's a positive reform business and other groups have been as one about trying to move this agenda forward," she said.

"[It's] exactly the sort of scheme we were supporting. The fact that its introduction is delayed will give business time to prepare for it."

Sex Discrimination Commissioner Elizabeth Broderick is also pleased with the scheme.

"That's got to be good for mums, it's got to be good for babies and ultimately, it's got to be good for our country," she said.

She says it is vital businesses are educated about the scheme.

"It is important up to that start date that there is a lot of education so that business understands how this scheme's going to work, but I think today it's an important social reform," she said.

Delayed, but welcomed
ACTU president Sharan Burrow says even with the means testing and the delayed start, the scheme is a big win for parents.

"After 30 years I guess one more year is not going to make that big a difference," she said.

"I think Australian women will understand that it takes some time to set up the scheme, and secondly that we have got difficult economic circumstances."

Families Australia chief executive Brian Babbington says he would have preferred a scheme of at least 24 weeks, but believes what the Government is offering is a good start.

"The phasing in of this in 2011 is arguably a bit far in the distance," he said.

"We would have liked to have seen it introduced immediately but on balance, given the economic circumstances, there would be many who would say that's a reasonable thing."